SP500 Future (ES) Charts (03/03/14)

Note:
1.  What a let down!  For whatever reason, the gap down open on Sunday night ruined otherwise a nice looking chart.  Well the short term picture has changed due to this development.  As I mentioned on the weekend comments that 48 and 44-6 support can't be violated for near term bullish scenario.  The gap-down open and subsequent trading took care of that.  On daily chart the candle dropped back inside of trading band and turned grey.  If you remember I have been talking about late green candles for awhile.  Generally when green candles came in very late in a trend they often were near the top of the trend.  Perhaps this is the case here.  Pinky is flat now suggesting that range action is likely near term although other daily indicators are still singing bullish tunes.  So based on daily ES has shifted from bullish to range/bullish posture.   Pinky is near  our 34-5 support which was briefly penetrated but ES closed well above it (one of reasons that I am still bullish on ES short term).  General rule if ES prints 2 daily close below pinky it tends to have a follow-through.

2.  Indicators for 3-hour chart have changed quickly to bearish and all the candle bodies are below the 44-6 levels now, a sign of weakness.  Meanwhile Pinky has crossed the thick blue signal line and stayed down.  This needs to be close watched and if Pinky is starting to trend down and price break below 34-5 and stays below the near term outlook will not be good. 

3.   Short term R/S levels:  (64), (59.5), (54-5), 51.5, 48, 44-6, 41.5, 37-8, 34-5, 28, 23, 18-9, 11



Daily




3-Hour